Warehouse Reit Share Discussion Threads

[wshak] 25/6/2024 17:30

Hi HugePants,WHR have deliberately called them Retail Warehouses to cause investors to think precisely as you just have.They don't want people to doubt that they have switched strategy.Those companies who might have been interested in a genuinely pure shed company may now look elsewhere in terms of takeover target.It's the worst kind of defensive move.Make the company an unfocused hotch potch of property assets and acquisitive companies who might take you out may leave you alone and look elsewhere.

[makinbuks] 25/6/2024 17:12

A bit more on the subject from City Wire

"Warehouse Reit (WHR) has made a sideways move into retail parks as it looks to grow earnings and bring its dividend cover up to scratch.

The £342m investor in multi-let warehousing has expanded its portfolio with the addition of the second phase of a retail park in Tamworth, Staffordshire for £38.6m. Tenants of the acquisition, which yields 7.4%, include Boots, H&M and Sports Direct across 13 units.

Tilstone Partner’s Simon Hope, who manages the real estate investment trust (Reit), said the purchase of a retail park – the first departure from warehouses – was a ‘natural extension for us’.

He said retail units were just ‘steel sheds’ but the fundamental difference between retail parks and industrial warehouses ‘is that the customer comes to us’."

[wshak] 25/6/2024 17:09

I agree.The asset looks decent but I can buy that kind of asset at bigger discounts elsewhere through the listed market.There was a good opening question by a gent on the conference call today who doubted that WHR are showing sufficient focus on the type of asset they are now buying.Clearly, I wouldn't expect WHR to borrow money to buy back shares as they would this asset. However, they can still do a meaningful buyback, which would be earnings enhancing.The switch in strategy is not on.

[makinbuks] 25/6/2024 15:50

From the AIC website: "...The company, which specialises in multi-let warehousing, has ventured away from its core investment strategy with the purchase of phase 2 of Ventura Retail Park, a 13-unit scheme in Tamworth, close to Birmingham."

To be fair this looks a decent asset but it ain't a shed. My objection is that they use the word "warehouse" deliberately to divert the casual reader from thinking this is significant. Some may even be invested here because they think traditional retail has had its day. Just be clear and unambiguous, that's all I ask

[hugepants] 25/6/2024 15:04

Not sure I agree. Doesn't a retail park consist of retail warehouses?

[wshak] 25/6/2024 14:31

Calling a retail park a "retail warehouse" so it sounds as though it fits in with the rest of the portfolio is a sign of them taking investors for idiots, IMHO.

[makinbuks] 25/6/2024 10:29

I'm in some agreement with WShak, the terminology used is less than clear and the manager here has form in dressing up announcements as I commented a few posts back

[makinbuks] 25/6/2024 10:27

To me the most important news is that discussions on Radway green are well developed. I am hopeful that the terms of that deal, given that the directors have been "patient" and "seen significant interest develop from various parties", will be attractive and provide a platform to return to a 100% dividend coverage

[nickrl] 25/6/2024 07:07

What they doing buying a retail pk and at that yield surprised others in the reit space didn't want it.

[spooky] 25/6/2024 06:50

Why is debt a major concern? Are you worried about loan to value or refinancing?

[qs99] 25/6/2024 06:49

Becoming less of a concern if the NAV can continue to rise even by small amounts DYOR

[danmart2] 25/6/2024 06:45

Debt still a major concern

[qs99] 25/6/2024 06:27

Decent set of results IMO given circumstances....

[18bt] 25/6/2024 06:22

Some growth in NAV again. Looks like valuers have started to take account of recovering values. Div still uncovered from earnings.

[qs99] 24/6/2024 09:00

Seems like some good disposals to help the de-leveraging...DYOR

[igoe104] 03/6/2024 18:24

Ebox takeover could bring interest back into the sector..

[spectoacc] 25/4/2024 11:10

@Makinbuks - that was my thought too, particularly when shown in dramatic %'s.

WHR have a debt problem, one they'll be able to sort out but it won't be getting cheaper like they'd hoped.

[makinbuks] 25/4/2024 08:56

And no news on the announced sale of their major development project. I don't like it when companies announce selectively good news

[nickrl] 25/4/2024 08:40

@igoe yes they show good leasing activity but contracted rent is a tad lower than Q3 albeit they made a disposal in the qtr so to be expected. Bottom line is the dividend remains uncovered and they still have an element of the RCF uncapped at 7.4%.

Better value elsewhere imv.

[igoe104] 25/4/2024 06:31

Fantastic numbers, share price should be much higher..

[apollocreed1] 07/3/2024 17:25

Anyone think that this could possibly be a takeover target by Segro? Or might they prefer EBOX?
Is the debt higher on WHR or on EBOX?

[igoe104] 01/3/2024 09:43

Decent numbers by bbox today, this sector is completely well over sold..

[sleepy] 13/2/2024 09:27

Or to pay dividends???